Tax
Form 1099-K
Form 1099-K is an IRS information return filed by payment processors and marketplaces reporting the gross amount of payment transactions settled for a business. It reports gross volume before fees, refunds and chargebacks, so it will not match a seller's net revenue.
In plain terms: A report of everything a platform processed for you — before any deductions.
Why it matters
The mismatch is the point of confusion. Your books must reconcile to the gross figure, which means recording gross revenue and each deduction separately rather than booking only the net deposit. Reporting thresholds have changed repeatedly — check current IRS guidance.
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